Basics of Health Management

Dr Arun Mitra

Dept of Community and Family Medicine, AIIMS, Bibinagar

2024-06-04

Learning Objectives

  • Understand the basic concepts of management
  • Explain the fundamental functions of management
  • Discuss Henry Fayol’s principles of management

What is Management?

Definition of Management

  • Over 33 definitions of Management

Simplest Definition

“Getting things done through and with people”

Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims

Management is a distinct process consisting of planning, organizing, actuating, and controlling performed to determine and accomplish the objectives by the use of people and resources

Why is Management Important in Health?

  • Efficient resource utilization
  • Improved patient care outcomes
  • Enhanced team performance
  • Essential for planning and execution
  • Supports achieving strategic goals

Are Doctors Good Managers?

Theories of Management

  • Management theories are concepts that outline different approaches to management.

  • They guide leadership styles, decision-making processes, and organizational structures.

  • Originated during the Industrial Revolution and have evolved over time.

Classical Management Theory

  • Focus on organizational structure and efficiency
  • Hierarchical approach to management
  • Clear Division of Labor
  • Rationality in Decision-Making
  • Key figures: Henri Fayol, Frederick Taylor, Max Weber

Human Relations Theory

  • Focus on motivating employees, Employee-centric policies
  • Satisfied employees lead to successful organizations

Contingency Theory

Proposes that there is no one best way to manage an organization.

Management practices should be flexible and adapted to the specific situation.

Systems Theory

The Systems Theory perceives an organization as an interconnected and interdependent network of components, focusing on the entire system rather than individual parts.

Basic Principles of Management

Introduction to Henri Fayol’s Principles

  • His work was one of the first comprehensive statements of a general theory of management.

    • six types of organisational activity
    • five primary functions of management
    • fourteen principles of management

Division of Work

  • Specialization increases efficiency
  • Division of labor in healthcare
  • Benefits: Higher efficiency and productivity

Authority and Responsibility

  • Balance of authority and responsibility
  • Clear roles and accountability
  • Decision-making processes

Discipline

  • Importance of following rules
  • Maintaining order and consistency
  • Ensuring reliable performance

Unity of Command

  • One boss for one employee
  • Example: Clear leadership in a healthcare team
  • Image: Leadership clarity
  • Avoiding confusion and conflict
  • Enhancing coordination and efficiency

Unity of Direction

  • Single plan of action
  • Ensuring common goals
  • Alignment of efforts for efficiency

Subordination of Individual Interest

  • Organizational goals over personal interests
  • Example: Team working towards common goals
  • Importance of teamwork
  • Building collective commitment

Remuneration

  • Fair compensation for employees
  • Example: Employee satisfaction and productivity
  • Motivation through rewards
  • Retaining talented staff

Centralization

  • Degree of centralization in decision-making
  • Example: Decision-making in a hospital
  • Balancing power and efficiency
  • Impact on organizational effectiveness

Scalar Chain

  • Clear line of authority
  • Example: Communication flow in an organization
  • Importance of clear hierarchy
  • Ensuring smooth information flow

Order

  • Right person in the right place
  • Example: Organized hospital resources
  • Ensuring efficiency
  • Role of systematic planning
  • Social Order
  • Material Order


Equity

  • Fair treatment of staff
  • Example: Team spirit and fairness
  • Building trust and morale
  • Enhancing organizational loyalty

Stability of Tenure

  • Job security and satisfaction
  • Example: Retention of experienced staff
  • Benefits of stable workforce
  • Reducing turnover and training costs

Initiative

  • Encouraging innovation and proactivity
  • Example: Encouraging innovation in healthcare
  • Importance of creativity
  • Supporting new ideas and improvements

Esprit de Corps

  • Team spirit and unity
  • Example: Team spirit in healthcare
  • Building a cohesive team
  • Enhancing morale and collaboration

Principles of Management

Recap

Definition of Management

Key Takeaways

  • Management Theories

    • Classical Management Theory
      • Focus on structure and efficiency
    • Human Relations Theory
      • Focus on employee motivation
    • Contingency Theory
      • Adaptation to specific situations
    • Systems Theory
      • Focus on the entire system

  • Principles of Management

    • Henri Fayol’s 14 principles

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References

  • Fayol, H. (1949). General and industrial management. Pitman Publishing.
  • Koontz, H., & O’Donnell, C. (1955). Principles of management: An analysis of managerial functions. McGraw-Hill.
  • Terry, G. R. (1960). Principles of management. Homewood, IL: Irwin.
  • 14 Principles of Management by Henri Fayol - GeeksforGeeks. Retrieved June 03, 2024, from https://www.geeksforgeeks.org/14-principles-of-management-by-henri-fayol/

Questions?

Thank You!